Chumley’s crews are continuing their progress down Homer Hill and are nearing West Hill Road. Chumley’s second crew is on Old Sterling Highway working back toward Anchor Point. Next week, a third crew will be starting on the west end of Fairview Street and working east toward Homer High school.
Utility Technology Inc. crews will start the installation of a 4” main this week on Sterling Highway and head toward Lake Street near the Homer McDonald’s. They will also have crews working on brushing and installing gas mains near Hillside Place and Soundview Avenue.
A common question ENSTAR has been asked is: “What are the wood survey stakes with ribbon for?” These stakes mark the right-of-way limits. The gas main will be buried between the road and these right-of-way stakes (generally 5’-8’ of the road). In city right-of-ways, the gas mains will generally be buried at a depth of 3’. In Alaska Department of Transportation right-of-ways, the gas mains will be buried 4’ deep. It is very important that you do not disturb the stakes!
As a reminder, other utilities will be locating their underground facilities with paint marks and small markers. Do not disturb these marks as it is the only way excavators know where the underground utilities are located.
Remember to drive slow around work areas and thanks for your patience!
This is your chance to turn in your ENSTAR service line application and get your questions answered by ENSTAR personnel and plumbing and heating experts
Expansion Background
Founded in 1961 as a natural gas distribution company, ENSTAR Natural Gas Company serves approximately 350,000 customers through: 3,200 miles of distribution and transmission main, 115,000 service lines, and 134,000 meters. As the only natural gas distribution company in Southcentral Alaska, ENSTAR has historically relied on natural gas discovered by producers in the Cook Inlet. Expansion to new areas, such as the City of Homer and Kachemak City allows ENSTAR to bring a safe, clean, and reliable energy to thousands of additional Alaskans while reducing their energy costs by more than half.
ENSTAR received its Certificate of Public Convenience and Necessity to serve the Homer area from the Regulatory Commission of Alaska on August 25, 2004. In 2012, the State of Alaska provided The City of Homer with an $8.15 million dollar grant enabling the project to move forward. Construction on the Homer Trunk Line is scheduled to begin in February 2013.
Currently, ENSTAR has a construction office in downtown Homer to manage the Trunk Line and local distribution systems projects. The office will also provide assistance to residents wishing to apply for natural gas service.
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Things You Should Know
Elements of the Expansion
The 22.7 mile Trunk Line will start in Anchor Point, run through the City of Homer, and end in Kachemak City. The line from Anchor Point to Homer High School will be 8” high density poly-ethylene pipe. The remaining distance from Homer High School to Kachemak City, will be 6” high density poly-ethylene pipe.
2) City of Homer Distribution System
The City of Homer is working through a public process to create a Homer Special Assessment District (HSAD). This process would approve the funding for the city’s distribution system and allow the City to contract with ENSTAR for its construction. The build-out is structured in two phases with the first phase constructed in 2013 and the second in 2014. For more information on how the HSAD proposal would work please visit the City of Homer website:
City of Homer distribution system build-out. White = 2013 Build-Out. Yellow = 2014 Build-out.
Homer Spit distribution system build-out. White = 2013 Build-Out. Yellow = 2014 Build-out.
3) Kachemak City Distribution System
A Utility Special Assessment District (USAD) was developed by Kachemak City to help its residents pay for the cost of the distribution build-out. The contract between Kachemak City and ENSTAR was signed on February 4, 2013. The Kachemak City distribution system will be constructed in one year and is scheduled to begin in 2013.
Surcharge
A surcharge is a temporary cost recovery mechanism that ENSTAR uses to assist area residents in paying for the cost of bringing natural gas to a new service area.
Construction costs for the Homer trunk line are estimated to be $10.5 million. The State of Alaska’s grant amount of $8.15 million reduces the cost to Homer area residents to $2.35 million. Consistent with ENSTAR policies and practices approved by the RCA, the difference of $2.35 million is passed on to customers of the new service area who receive natural gas through a $1 per thousand cubic feet (Mcf) surcharge. This allows the cost of delivery to be distributed over a period of time rather than area residents having to pay the full cost up front in order to receive natural gas. Once the $2.35 million is paid back, the $1 per Mcf surcharge will be removed.
The duration of the surcharge is dependent on how quickly gas is consumed. Therefore, the earlier customers sign up and start consuming gas, the sooner the surcharge will be removed.
All parcels below the solid green line will be assessed the $1 per Mcf surcharge.
Click here to read the RCA approved tariff language for more detailed information on how the surcharge works
